How to terminate a contract with a realtor unilaterally?

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How to terminate a contract with a real estate agency without paying a fine?

Sometimes, sellers and buyers of houses and apartments are faced with the question of not only how to conclude, but also how to terminate an agreement with a real estate agency. Currently, most real estate transactions are carried out with the participation of realtors, professionals in the housing market.

Searching for sellers or buyers often lacks the time and necessary knowledge, and the time frame for resolving housing issues is always somewhat limited.

Turning to the services of an agency to complete acts of purchase and sale of housing, unfortunately, is associated with the risks of undesirable development of unforeseen situations.

In order to maximize the security of a future transaction, you need to carefully study the proposed agreement and determine the areas of responsibility of the parties.

Choosing a real estate agency

When choosing a real estate agency, give preference to the one that promises to complete the procedure with all the required formalities provided for this type of transaction

It is better to choose an agency that has already proven itself in the real estate market and has joined a professional association or real estate community.

You need to avoid dubious companies that offer to proceed with the transaction “without formalities.”

In this case, the formal side is not superfluous, but one of the most important in the relationship between the customer and the contractor.

Otherwise, immediately after signing the agreement, you will have to look for ways to terminate the contract, avoid financial losses and the threat of paying additional penalties or fines.

Notice of termination of contract with a real estate agency sample

An agency agreement can be unilaterally canceled only if it does not specify a validity period. if there is a deadline and it is stated that it is impossible to cancel the contract before it, then you will have to fulfill it. the contract may provide for the right to unilateral termination, and in the case of agency, all conditions regarding the termination period, penalties or loss of advance are valid. Thus, determining what type of contract you have is of utmost importance if for some reason you need to cancel it. for brevity: we refuse services at any time, from an agency agreement - only if it is unlimited or if the right to refuse is provided for in the agreement. As for the actions that need to be taken to cancel the contract, they are aimed at obtaining evidence of refusal. In the event of a dispute, you will need documents confirming that you actually refused and reported this to the agency. Moreover, it is important that the date of sending the notification is recorded. There are only two options here: either directly deliver a letter of refusal from the contract against the signature of an agency employee on the copy, or send a registered letter with acknowledgment of receipt to the agency’s legal address, keeping a copy of the letter. despite the fact that the copy and the returned notice are in no way connected, the court accepts such documents as evidence and invites the other party to refute them (refute, i.e. prove that the notices were not received, is usually impossible). a message by telephone, e-mail or even fax cannot be evidence, since it is impossible to reliably establish either the fact of refusal itself, or the time of sending and the person from whom the refusal came. for example, anyone who knows the password can write from your email account. and money is not returned for information services. This is a well-known scam that has been on the market for many years.

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One of the practices of unscrupulous agencies:

The potential client is overvalued for his apartment and is convinced that other agencies simply wanted to deceive him by offering unfavorable conditions. The owner agrees to such tasty conditions and... Signs the contract to rejoice. And then it turns out that the contract has no expiration date and that there are penalties for termination. From this moment on, the realtor can sluggishly place ads on Avito or in local newspapers and wait until there are “fools” to buy at that price or until the prices “grow” to the set price. And when the owner “boils” from such inaction - poke him with penalties, fines and lower the price.

What to pay attention to

When concluding an agreement, please note that it will have legal force if it is signed by the head of the agency or his deputy

The Preamble reflects the parties to the agreement.

In addition to the customer, or recipient of services, there is a second party, the performer, represented by the agency as a legal entity.

The document can only be signed by the manager or deputy, vested with authority on the basis of the provided power of attorney or the organization’s charter.

The signature of an ordinary employee on papers will not have legal significance.

The charter, power of attorney or other source mentioned in the document must be freely available and not a trade secret.

The Subject of the agreement clearly and unambiguously states the obligations of the parties: what the realtors’ service is and the readiness to make payment after its acceptance.

Obligations must be spelled out as accurately and in detail as possible. The property is reflected with parameters and unambiguous characteristics. Legal disputes and consequences will arise from how the contractual requirements are defined.

The obligations should take into account the need to verify the purity of the transaction, i.e. absence of encumbrances on the object, collection of necessary documents, registration procedure, etc.

The deadlines for fulfilling obligations should not be confused with the validity of the contract. It is recommended to specify each stage: terms of search, registration, registration - separately and indicating the execution time. Then the facts of non-fulfillment of obligations will be obvious.

The cost of real estate services is a broad concept, so you need to indicate a specific list for the indicated remuneration.

The collection of amounts in excess of the contract price may be reflected with an indication of possible additional costs: hiring a notary, advertisements, payment for certificates.

Please note that advance and deposit are different concepts; they determine the progress of settlements in the process of further processing of the transaction

The settlement procedure usually requires payment of certain amounts in the form of an advance or deposit. It is important not to confuse them, since the consequences of the calculations are different.

When making a deposit, in case the customer refuses to cooperate, the agency withholds this amount. If the relationship is terminated due to the fault of the real estate agency, realtors are obliged to return the deposit amount in double amount.

The advance payment must be returned for any reason for termination of the contract.

In the Terms and Conditions for terminating the contract, it is important to provide for the mutual obligations of the parties in order to eliminate possible disputes.

This paragraph explains whether it is possible to terminate a contract with a real estate agency unilaterally, indicates the notification rules, and the consequences for each party.

The responsibility of the parties, as a rule, is prescribed, indicating penalties for customers for violations of obligations. Realtors are trying to reduce their liability.

This point should be checked for equality of the parties and adjustments should be sought if the balance is upset.

Legal services in Kursk - Lawyer O.N. Umerenkov

QUESTION: I entered into an agreement with a realtor company to provide intermediary services for finding an apartment and subsequent registration of its ownership. Since the term for the provision of services was not specified in the contract and the realtors did not offer any options within a month, I decided to terminate the contract with the realtor. However, the realtor demands to pay a penalty for early termination of the contract. Is it possible to terminate a contract with a realtor to purchase an apartment without paying a penalty?

ANSWER: In accordance with the legal position set out in paragraph 11 of the resolution of the Plenum of the Supreme Court of the Russian Federation dated June 28, 2012 No. 17 “On the consideration by courts of civil cases in disputes on the protection of consumer rights”, on relations related to the implementation by legal entities and individual entrepreneurs of intermediary services in the market of real estate transactions (real estate services, consisting, in particular, in the selection of options for real estate for their subsequent purchase and sale, rental by citizens for purposes not related to business activities, assistance in concluding purchase and sale transactions by these citizens and other transactions in relation to real estate, organizing the sale of real estate on behalf of these citizens), the Law on the Protection of Consumer Rights applies. By virtue of Article 782 of the Civil Code of the Russian Federation, the customer has the right to refuse to fulfill a contract for the provision of services for a fee, subject to payment to the contractor for the expenses actually incurred by him. Similar provisions are contained in Article 32 of the Law of the Russian Federation “On the Protection of Consumer Rights”, according to which the consumer has the right to refuse to fulfill the contract for the performance of work (rendering services) at any time, subject to payment to the contractor for the expenses actually incurred by him related to the fulfillment of obligations under this agreement. The listed provisions give the customer the right to terminate the contract with the realtor for the purchase of an apartment unilaterally. In this case, the customer is obliged to reimburse the contractor (realtor) for all expenses incurred by him in connection with the search for an apartment for the customer. When terminating the contract, the law does not impose any additional obligations on the customer, therefore they cannot be established by the contract.

Paragraph 4 of Article 421 of the Civil Code of the Russian Federation establishes that the terms of the contract are determined at the discretion of the parties, except in cases where the content of the relevant condition is prescribed by law or other legal acts. According to clause 1 of Article 422 of the Civil Code of the Russian Federation, the contract must comply with the rules mandatory for the parties established by law and other legal acts (imperative norms) in force at the time of its conclusion. Clause 1 of Article 168 of the Civil Code of the Russian Federation stipulates that a transaction that violates the requirements of a law or other legal act and at the same time encroaches on public interests or the rights and legally protected interests of third parties is void unless it follows from the law that such a transaction is contestable or other consequences of the violation not related to the invalidity of the transaction must be applied. As explained in paragraph 76 of the resolution of the Plenum of the Supreme Court of the Russian Federation dated June 23, 2015 No. 25 “On the application by courts of certain provisions of Section I of Part One of the Civil Code of the Russian Federation”, the terms of a transaction concluded with a consumer that do not comply with acts containing civil norms are void. rights obligatory for the parties when concluding and executing public contracts (Article 3, paragraphs 4 and 5 of Article 426 of the Civil Code of the Russian Federation), as well as the terms of the transaction, during the execution of which the express legislative prohibition of restricting consumer rights was violated. By virtue of clause 1 of Article 16 of the Law “On the Protection of Consumer Rights”, the terms of the contract that infringe on the rights of the consumer in comparison with the rules established by laws or other legal acts of the Russian Federation in the field of consumer rights protection are declared invalid. Taking into account the above, the condition of the service agreement, which establishes the customer’s obligation to pay the contractor (realtor) a penalty in the event that he decides to terminate the contract with the realtor for the purchase of an apartment, that is, establishing a sanction for the customer’s refusal to provide the services of the contractor, infringes on the consumer’s statutory right to refuse to provide the service at any time and reimburse the contractor (realtor) for the expenses incurred. In this regard, this clause of the agreement does not comply with the requirements of the listed legal norms and its provisions are void. Thus, the customer has the right to terminate the contract with the realtor for the purchase of an apartment without paying any penalty, and is obliged to reimburse only the expenses actually incurred by the contractor. The responsibility to prove the existence of expenses incurred and their justification rests with the contractor.

About order, rules and nuances

Each service that you want to receive from the agency should be recorded in a document

In the case of a signed contract, the agency bears responsibility, including financial responsibility, for the level of customer service.

This strengthens the seriousness of the staff and motivates specialists to fulfill their obligations efficiently at every stage of work.

Each service provided under the contract must be documented to avoid misunderstandings.

These can be inspection reports, transfer of documents, receipts, inventories.

It should be noted that the primary price of the property is always higher than the average in the real estate market. Reduction steps, their necessity and justification can be included in the text of the contract in the form of an approximate schedule with threshold values.

The Civil Code of the Russian Federation does not exclude the addition of any clauses to the standard contract at the discretion of the parties.

Notice of termination of contract with a real estate agency sample

The basis for termination of the contract may be failure to fulfill or improper performance of obligations by the counterparty in accordance with a previously concluded contract, for which the claim was filed. The notice of termination of the contract is drawn up in any form, its wording must be legally correct. It is worth considering the fact that termination of the contract is carried out unilaterally, therefore in the text of the notice it is more correct to use the term “unilateral refusal to fulfill the contract”. You should start drawing up the document with the word “Notification” and the above-mentioned phrase below it. The introductory part must contain the details of the party initiating the termination. Such details include:

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A notice of termination of a contract is a document containing information about the intention of one of the parties to the agreement to terminate a previously concluded contract before its expiration. The initiation of termination of the agreement is regulated by Art. 782 of the Civil Code of the Russian Federation. Current legislation provides for compensation for losses and expenses depending on which party initiated the termination of the agreement. The procedure for terminating a contract requires the initiator to send a notice to the counterparty, which must be legally correctly drawn up in order to minimize the likelihood of litigation in the future.

Features of an exclusive agreement

An exclusive contract imposes great responsibility on both the order executor and the client.

Agencies are interested in concluding a paid exclusive agreement with the client for the preferential right to work as executors with a certain property.

This agreement deprives the customer of the right to contact other real estate firms to complete a real estate transaction.

What does a real estate agency agreement oblige? Main obligations of the exclusive agreement:

from the agency – use of maximum resources and services, advice on all marketing and tax issues, legal “purity” of the transaction;
from the client – delegation of ownership rights to the agency, providing the opportunity to work without competition.

The framework of the exclusive agreement protects the client from the machinations of fraudsters, contributes to a complete analysis of the situation and the successful completion of the transaction in the interests of the client.

Termination of a contract with a realtor unilaterally without paying a penalty or fine

In order to avoid financial losses when terminating the contract, this must be provided for when concluding it. In particular, it is necessary to spell out in detail and unambiguously the possibility of unilateral termination of the contract. Dear readers! We cover standard methods for solving legal problems, but your case may be unique. We will help you find a solution to your specific problem for free
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Also, all its points must not contradict the law. The agency cannot intimidate with fines and penalties. It is possible to terminate a contract with a realtor without paying a penalty, because by law he is obliged to return all money, except for that paid for services performed.

When answering the question of how to terminate a contract with a real estate agency for the sale of an apartment, you need to understand that this can be done at any time. To do this you need:

serve notice of termination to agency employees. You must receive notification of receipt from them;
send notification by registered mail. It is important to keep a copy of the notice and receipt of the letter.

It is important to use these methods of written notification, since in the event of litigation, they will be evidence of the customer’s actions. Oral messages about termination of the contract will not be taken into account by the court.

As mentioned above, fines for termination of a contract cannot be imposed by themselves. But if the contract states that the customer agrees to pay them in the event of termination of the contract due to more favorable terms of the transaction, then the realtor can apply such sanctions. This once again proves the importance of taking into account all circumstances when concluding a contract.

It should also be remembered that the relationship between customers and service providers is regulated by the Federal Law “On the Protection of Consumer Rights”. This also applies to real estate services. The rights of the customer in this case are protected more than the rights of the agency. He is entitled to:

Reservation of rights that do not infringe on the interests of the parties to the contract.
Protection from payment of a penalty upon termination of the contract, since it may worsen his position, which is prohibited by law.
Refusal of the company's services with payment for services already provided.
Refund of money by the agency if it did not provide services within the prescribed period.
In case of termination of the contract, the advance must be returned within 10 days.

If the real estate agency refuses to return the advance payment, it will be fined by court decision.

Let's sum it up

Every citizen needs the support of real estate professionals when it comes to solving housing issues.

But no one is immune from fraudulent schemes; no agreement can guarantee the honesty of counterparties represented by realtors.

The customer should receive the answer to the question of how to terminate an exclusive contract with a real estate agency from the agency itself, without financial threats and intimidation, if the company works honestly and openly, within the law.

Consumers have the right to protect their interests, choose contractors, and look for the most acceptable options for buying and selling their real estate.

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Discussion: 6 comments

Alexander says:
10/27/2016 at 00:40
You should not enter into an exclusive agreement with a real estate agency and under no circumstances give them the original documents. This is where Inkom sins. And any contract can be terminated unilaterally.
Answer
Allah says:
07/27/2017 at 14:55
We entered into an agreement with a real estate agency to sell a house. It was issued for six months, after which it was terminated automatically. That’s how it worked out for us and the contract was not renewed.
Answer
Olga says:
10.20.2017 at 20:12
The contract can only be terminated if there are compelling reasons.
Answer
Ivan says:
06/09/2019 at 18:44
Where is the best place to complain about realtors who do not fulfill their obligations, disclose information and generally act not in the interests of their client in order to correct the situation?
Answer
Vladimir says:
06.26.2019 at 10:37
We entered into an agreement with the Real Estate Agency INCOM LLC APARTMENT. After signing the contract and paying for the service, they did not fulfill their duties. How can I terminate the contract with them?
Answer
Georgy says:
08/21/2019 at 00:41
Conclude contracts only with trusted agencies!
Answer

How to notify an agent of termination?

In order to terminate a contract with a realtor at any stage, the client will be required to send a notice to him indicating the date.

The notice can be delivered against signature to an employee of a real estate company or to the realtor himself. Or - send a notification by mail to the legal address of the company, keeping a copy and receipt from the mail.

The application must describe the circumstances under which the contract was concluded, and also, if there were any, list the shortcomings in the realtor’s work. At the same time, the notice indicates the date from which the agreement is terminated unilaterally.

How to do it without paying?

As follows from the provisions of the law discussed above, it will be possible to completely avoid payment under the contract in the event of its early termination only if the realtor did not incur any costs as part of its execution. Let us remind you that according to the law, the customer pays only actual costs. Let's look at typical situations that can occur in relationships with an intermediary company.

Advertising costs incurred

One of the most common situations is a realtor’s statement that he has already begun to invest in the actions he has taken. This action is called placing advertisements. However, here it is important for the client to remember that any actions that require material costs must be documented .

In other words, if a realtor claims that he spent a certain amount on placing advertisements, he is obliged to provide the customer with the appropriate payment documents: checks, receipts, and so on.

The buyer sold the home himself, and the agent demands a commission

There are cases when, after concluding an agreement with a realtor, he does not fulfill his obligations , however, in order to dull the client’s vigilance, he creates the appearance of hectic work. Sends SMS, calls, reports false information about supposedly potential buyers who have supposedly already looked at the apartment and taken time to think about it.

However, in the future, no specific actions take place, and the seller himself finds a buyer for his apartment. In this case, it is logical that he wants to terminate the contract with the realtor who failed to fulfill his obligations. But then the realtor takes a stand and demands money as compensation for his time spent.

Here again it is important to remember the disposition of Article 782 of the Civil Code of the Russian Federation. If the seller himself found a buyer, then the realtor did not fulfill his obligations. Accordingly, he cannot have any evidence to the contrary. And here the seller should be guided only by the rule of law and, if the realtor is able to confirm the actions of advertising, reimburse him only for actual expenses. If there is no confirmation, the seller is not obliged to pay the realtor for anything.

The customer made payment according to the agreement, and then decided to terminate the relationship

According to the above provisions of the law, if the client paid the realtor an advance or made an advance payment, and the realtor did not fulfill his obligations before terminating the contract, the client has the right to demand a full refund of his money .

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To summarize, we note that the seller of real estate, if he is dealing with a realtor, has every right to terminate the contract early. In addition, there is every reason not to succumb to threats and intimidation from an unscrupulous realtor. And if a situation arises where you need to terminate the contract, it is only important to remember your rights and act in accordance with the law.

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By entrusting the search for a suitable apartment or the sale of a house to a real estate company, you will free yourself from many hassles, of course, if you choose a reliable real estate agency

Currently, most real estate transactions are carried out with the participation of realtors, professionals in the housing market.

Searching for sellers or buyers often lacks the time and necessary knowledge, and the time frame for resolving housing issues is always somewhat limited.

Turning to the services of a real estate agency to complete acts of purchase and sale of housing, unfortunately, is associated with the risks of undesirable development of unforeseen situations.

In order to maximize the security of a future transaction, you need to carefully study the proposed agreement and determine the areas of responsibility of the parties.